Sensex, Nifty Log Worst Drop In Over Four Years As Rs 5 Lakh Crore Wiped Off
An investor looks at a stock quote screen near the end of the trading day in a brokerage in Shanghai, China. (Photographer: Kevin Lee/Bloomberg News)

Sensex, Nifty Log Worst Drop In Over Four Years As Rs 5 Lakh Crore Wiped Off

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Closing Bell: Sensex, Nifty Log Worst Drop In Over Four Years As Rs 5 Lakh Crore Wiped Off

Indian equity investors lost about Rs 5.5 lakh crore today, according to data available on Bombay Stock Exchange. Of this, they lost Rs 4 lakh crore within the first 15 minutes of the opening trade.

That came after Indian indices ended lower, extending their declines for the sixth consecutive trading session.

The S&P BSE Sensex fell 3.64 percent, the most since August 2015, to end at 38,297.29 and the NSE Nifty 50 fell 3.7 percent, registering their steepest fall since August 2015, to close at 11,201.75. Both the indices ended at over four-month low. The broader markets represented by the NSE Nifty 500 Index slumped 3.58 percent.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

“I could see this easily going another 5-10 percent but it may not happen as quickly as the last 10 percent has happened,” Arvind Sanger, managing partner at Geosphere Capital Management, told BloombergQuint in an interaction. “I definitely don’t think this is the time to jump in with both hands and start bottom fishing,” he said.

Meanwhile, Rusmik Oza of Kotak Securities said that it is the ideal time to buy as the Nifty is in the oversold territory.

“Since the risk-reward ratio has turned favourable for the market, it is ideal to accumulate stocks keeping in mind the downside of 11,000 for the Nifty,” according to the Mumbai-based analyst.

The markets have entered the oversold zone as the fall has been ‘too-fast-too-soon’, Oza said in a mailed statement.

The Relative Strength Index on the Nifty was below 30 since Feb. 27, 2020, a level that indicates it is in the oversold zone.

“During past instances like coronavirus, the markets fell gradually and recovered gradually. This time, the fall has been vertical and that too in a matter of a few days. Going by past precedencies, the recovery in markets is equal or higher than the fall,” Oza said.

The market breadth was tilted in favour of sellers. About 1,566 stocks declined and 252 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 6.8 percent slump.

Global Markets Update: Stock Rout Deepens

Fear tightened its grip on global markets Friday, with stocks across Europe and Asia plunging a day after the worst rout on Wall Street since 2011.

  • The Stoxx Europe 600 Index sank 4.2 percent as of 9:24 a.m. London time.
  • Futures on the S&P 500 Index dipped 2.1 percent.
  • Nasdaq 100 Index futures declined 2.3 percent.
  • South Korea’s Kospi index decreased by 3.3 percent.
  • The MSCI Asia Pacific Index sank 2.5 percent.

Get your daily fix of global markets here.
Source: Bloomberg

TCNS Clothing Gains For Fourth Consecutive Trading Session

Shares of TCNS Clothing extended gains for the fourth consecutive trading session. The stock rose as much as 3.8 percent to Rs 596.95.

Trading volume was double its 20-day average, Bloomberg data showed. The stock declined 31 percent in the past 12 months compared to a 7.3 percent gain in the Sensex.

Market Check: Sensex Drops 1,300 Points, Nifty Set For Steepest Fall In Over Four Years

Indian equities extended declines to trade at day’s low.

The S&P BSE Sensex fell 3.8 percent or 1,500 points to 38,342 and the NSE Nifty 50 fell 3.57 percent to 11,216.80. The 50-stock index is set for its worst drop since August 2016.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

Stocks Moving On Heavy Volumes

Adani Gas

  • Stock fell as much as 14.9 percent to Rs 125.30.
  • Trading volume was more than 20 times its 20-day average.

IIFL Wealth

  • Stock fell as much as 4.6 percent to Rs 1,442.
  • Trading volume was almost 30 times its 20-day average.

Sundaram-Clayton

  • Stock rose as much as 2 percent to Rs 2,035.75
  • Trading volume was five times its 20-day average.

Future Consumer

  • Stock fell as much as 19.9 percent to Rs 15
  • Trading volume was more than five times its 20-day average.

U.S. Markets Update: Dow Jones Futures Drops Nearly 400 Points

Futures on the Dow Jones fell 360 points, while contracts on the S&P 500 fell 46 points. Meanwhile, Nasdaq futures fell 136 points.

Sensex, Nifty Log Worst Drop In Over Four Years As Rs 5 Lakh Crore Wiped Off
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